Liquidating damages calculation for hud construction

Accordingly, the following factors are relevant to determining what is reasonable under the circumstances: In one case involving the construction of a church, the pastor of the church testified that the amount of liquidated damages, 0.00 per day, related to the anticipated loss of donations or offering, tuition for a private school affiliated with the church, and the increased costs of building the church as time progressed.

When considering whether to award liquidated damages, the court found that these factors supported the liquidated damages amount.

One last thing to consider is why there was delay in the first place.

Even if you have a valid liquidated damages provision in your contract, you may not recover under it.

This post and the next will look at some of the frequent nagging questions and issues you’re likely to have involving liquidated damages, including: What Are Liquidated Damages?

Frequently you’ll see some formula for liquidated damages.

Why Have Liquidated Damages In A Construction Contract?

Some reasons for using liquidated damages: An owner knows that if the contractor finishes late, the owner needs only a calendar and their fingers (or a calculator) to identify the amount of their damages.

For instance,

Frequently you’ll see some formula for liquidated damages.

Why Have Liquidated Damages In A Construction Contract?

Some reasons for using liquidated damages: An owner knows that if the contractor finishes late, the owner needs only a calendar and their fingers (or a calculator) to identify the amount of their damages.

For instance, $1,000 per day that substantial completion is late.

If the prime contractor is five days late in substantially completing their work, they owe the owner $5,000.

Frequently you’ll see some formula for liquidated damages.Why Have Liquidated Damages In A Construction Contract?Some reasons for using liquidated damages: An owner knows that if the contractor finishes late, the owner needs only a calendar and their fingers (or a calculator) to identify the amount of their damages.For instance, $1,000 per day that substantial completion is late.If the prime contractor is five days late in substantially completing their work, they owe the owner $5,000.

If the prime contractor is five days late in substantially completing their work, they owe the owner ,000.